Rep. Buddy Carter (R) has introduced the Timely Oversight of Operations, Liquidity, Accountability, Targeting, and Effectiveness (TOO LATE) Act, a bill granting the president explicit power to fire the Chair of the Federal Reserve.
For context, the current law is ambiguous, stipulating that the president may fire the Chair of the Federal Reserve “for cause.” Some legal scholars have interpreted that to mean malfeasance, neglect of duty, or inefficiency.
This bill will explicitly broaden the scope of reasons a president may fire the Chair of the Federal Reserve. For a bill that provides such a boost to the power of the executive, it isn’t huge.
It is only three pages long, but it makes significant changes to the code by amending it and adding conditions that the Chair of the Federal Reserve has to meet. The bill, however, requires the President to make a statement clarifying why they removed the Chair, including citations to the new code.
Rep. Carter has introduced this bill as a way to target Federal Reserve Chair Jerome Powell. Carter is convinced that Powell is ineffective and not fit for office after failing to comply with President Donald Trump’s economic agenda.
“Federal Reserve Chair Jerome Powell needs to go, and the President should have the power to make that decision without question. Powell has been too late to cut rates, and it is directly harming the American people,” Carter stated. “With this bill, we will restore proper oversight of the Federal Reserve and give the president another tool in his tool chest to strengthen and grow the economy."
Carter reaffirmed this by advertising the bill on X and claiming that Powell has hurt Americans by acting so slowly. He stated, “Jerome “Too Late” Powell missed the moment to cut rates, hurting Americans. My bill empowers the President to fire a Fed Chair who fails the American people.”
